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Report: Electric choice customer waiting list grows in Michigan

A state report released Friday shows that the number of customers waiting to change utility companies in Michigan has increased 81 percent from 2011 to 2013, according to the Michigan Public Service Commission.

If the 10 percent statutory cap on customers allowed to switch utilities didn't exist, the PSC said 25 percent of customers would choose to leave Consumers and 22 percent leave DTE for one of the state's 27 alternative electric suppliers, the report said.

"Today's report from the Michigan Public Service Commission is just the latest reminder that electricity rates in Michigan are too high and job makers are demanding competition," said Wayne Kuipers, executive director of Energy Choice Now, in a statement.

"Michigan has the highest energy rates in the Midwest because of our monopoly-style system and that has thousands of job makers and families clamoring for both a change and a choice."

The PSC report shows that Michigan has higher rates than fellow Midwest states of Ohio, Indiana, Illinois, Minnesota and Wisconsin. Rates were lower in Wisconsin and about the same in Illinois in 2008, when Michigan approved its 10 percent cap on choice, the report shows.

The 10 percent cap only allows a certain number of customers of DTE and Consumers from switching to alternative energy suppliers each year. The limitation has increased the number of people and businesses to 11,565 in 2013 from 6,385 in 2011.

Increasing the cap could also worsen service reliability as investors shy away and utility revenue declines because of fewer customers, according to the Michigan Jobs & Energy Coalition, which represents the utility companies and supports the current regulatory scheme.

Last December, Michigan Gov. Rick Snyder said he expects the state Legislature to draft bills that continue to improve energy efficiency, increase renewable energy production and lower residential and industrial energy bills.

However, Snyder has not addressed whether he supports increasing, eliminating or leaving alone the state's existing 10 percent cap on customer choice of energy providers.

Last December, Rep. Mike Shirkey, R-Clarklake, introduced House Bill 5184 that would remove the 10 percent cap on electric choice and open Michigan's electricity market to full competition.

The bill also provides some protection for utility companies during the transition from a hybrid regulatory model to full competition.

DTE and Consumers oppose HB 5184.

Other highlights of the PSC report include:

• Alternative electric suppliers served about 6,660 electric choice customers in Michigan last year compare with 6,800 in 2012. This represents 2,410 megawatts of electric demand, an increase of 396 megawatts from 2012.

In 2013, the PSC said customers in the service territories of Wisconsin Electric Power Company and Wisconsin Public Service Corporation participated in electric choice programs.